POLS 1120 Introduction to Political Economy Instructor: Professor Michael E. DeGolyer

1. Does Democracy Promote or Retard Economic Development?

2. 1. Does democracy significantly related to economic development?

3. The relationship is just as similar as the relationship between Health and Money

5. Toil to earn money may hurt your health

6. You need a good health for keeping earning money

9. Democracy conform to public expectations

10. Democratic identity is beneficial for government interest

13. So… 2. Is democracy a good thing or bad thing for economic development?

14. 2.1 Disadvantages of Democracytoeconomic development 1.Needahugeeconomiccostfor reaching democracy 2.Reducetheefficiencyofeconomicpolicy,especiallywhenthepolicyisright. 3.Toomuchemphasisondemocracyleadthemarketandevensocietytoconfusion.

15. Democracy has ahugeeconomiccost: Cost of Institution Cost of Implement Cost of Chance Cost of Risk

16. The Cost of Democracy:radical change of Eastern Europe

18. “do not engage in any 'democratic', as there will be no good results! Please do not let the situation in chaos, stability is the first one.“(2006)—— Mikhail Gorbachev (Russian President of the Soviet Union (1985-91))

19. ConfusionofSociety: Tiananmen Event, China, 1989 The Statue of Democratic Goddess on Tiananmen Square. People: Too Irritated to get democracy The government: Too conservative the result of the event is terrible.

20. 2.2 Advantages of Democracy to economic Development… 1. Get balance in wealth distribution 2. Supervise power and rectify mistakes protect economy from social and political disaster 3. Ensure the stability of economic development with a good political institution, although not a good leader

21. The bigger the Gini Index, the bigger gap between Rich and Poor. Get Balance in Distributing Economic Achievement Pay attention to China again, Some people appeal that its time for China to reform its political system in order to distribute its economic achievement more fair.

22. To prevent social and political disaster which harmful to economy The Great Leap Forward. It is said that more than 30 million people died in famine after the movement. Seems natural disaster, but actually political.

23. Contribute a good system, but not a particular leader DEMOCRACY  Depends on Human votes  Depends on the majority  a better result Undemocratic  depends on the highest leader  IF he is wrong  all the results are terrible

24. 3. Conclusion:Maximum the Benefit and Minimum the Risk To sum up, democracy is a contextual thing which may cause both positive and negative impact on economic development at different situations.

25. democracy can promote or at least protect economic development when… The particular democratic policies suit to the level of economic development The country can afford the cost without toil Good opportunity and stable politic condition.

27. Social tradition and public expectation has obvious conflicts with the policies

29. Henes Chi and Vida CAI Instructor: Professor Michael E. DeGolyer b630400012@mail.uic.edu.hk or caiweichao@gmail.com POLS 1120 2009 Summer

30. 1. Is Democracy the Best Setting For Strong Economic Growth? http://online.wsj.com/public/article/SB117330214622129995-wXADlsfRHp9Z34RAyyVjN_w1yBI_20080311.html 2. Is Democracy Good for Economic Growth? http://www.objectivistcenter.org/cth--259-Is_Democracy_Good_Economic_Growth.aspx 3. Does Economic Success Require Democracy? http://www.american.com/archive/2007/may-june-magazine-contents/does-economic-success-require-democracy 4. Development and Democracy http://www.foreignaffairs.com/articles/61023/bruce-bueno-de-mesquita-and-george-w-downs/development-and-democracy 5. Website relating to Tiananmen Incident http://www.hkhkhk.com/ Websites

31. 6. Democracy Journal http://www.democracyjournal.org/ 7. Democracy and Economic Development http://politics.as.nyu.edu/docs/IO/2800/sisson.pdf 8. Balancing democracy, market economy http://www.firmaspress.com/546.htm 9. Economic Development and Democracy http://www.cla.wayne.edu/polisci/kdk/seminar/sources/robinson.pdf 10. The Relationship Between Economic Development and Democracy in Africa http://www.politik.uni-trier.de/pubs/ma/olk.pdf 11. Economy and democracy: Don't turn out the light http://www.thejakartapost.com/news/2004/06/22/economy-and-democracy-don039t-turn-out-light.html Websites

32. 12. Political Freedom and Economic Well-being: A Causality Analysis http://www.ecomod.net/conferences/ecomod2003/ecomod2003_papers/Kirmanoglu.pdf 13. Political Freedom and The Stability of Economic Policy http://www.cato.org/pubs/journal/cj24n3/cj24n3-4.pdf 14. Freedom Democracy and Economic Welfare http://www.fraserinstitute.org/researchandpublications/publications/3116.aspx 15. Economic Freedom and Economic Growth in Mexico http://www.ncpa.org/pub/ba605 16. Empirical Linkages Between Democracy and Economic Growth http://www.jstor.org/pss/194169 17. Democracy and Economic Development http://www.jstor.org/pss/422069 Websites

33. 18. Democracy, Economic Development, And Income Inequality http://www.jstor.org/pss/2095732 19. Inequality, democracy, and economic development http://books.google.com/books?hl=en&lr=&id=kkDcBWDxAB0C&oi=fnd&pg=PA1&dq=Democracy+AND+(economic+development+OR+growth)&ots=eccIbkll-Q&sig=i7wyo0NJmCu-Q1qqFRL7hDJnDLo 20. Democracy and Economic Growth: A Causal Analysis http://www.jstor.org/pss/422444 Websites